Gold vs Silver 2026: Will gold give higher returns in the new year or will silver win?

The year 2025 was a strong one for both precious metals, gold and silver. The rally seen at the beginning of the year continued throughout the year, making it one of the highest-returning years for these metals in their long history. 

The price of gold on India's Multi-Commodity Exchange (MCX) increased by nearly 78%, rising from ₹75,233 on December 20, 2024, to ₹1,33,589 on December 22, 2025. 

Silver, meanwhile, delivered a whopping 144% return during the same period, jumping from ₹85,146 to ₹2,08,062. 

Meanwhile, the benchmark stock market index, Nifty 50, rose only 10.18%. This is why many investors shifted from equities to investing in the yellow and white metals.

Central banks' continued purchases and rising industrial demand for silver were the primary reasons behind gold's record prices. Furthermore, uncertainty about the global economy due to the US tariff hikes also contributed to the surge. 

The question now is: will global economies recover from the impact of tariffs in 2026, or will uncertainty persist? Will gold or silver be a better investment choice in the new year? Let's find out what experts have to say.

How might gold and silver perform in 2026?

Naveen Mathur, Director (Commodities) at Anand Rathi Shares & Stock Brokers, says the fundamentals for both gold and silver are strong in 2026, although returns may moderate somewhat in the new year. 

He believes that expectations of global interest rate cuts, geopolitical tensions, central bank purchases, a weak dollar, and ETF investments will keep gold performing steadily. 

Silver, on the other hand, is more volatile, but being both a precious and industrial metal, it could outperform gold in percentage terms. 

Aksha Kamboj, Vice President of IBJA, says that despite fluctuations, both metals could remain in the positive zone until the end of 2026, as demand remains strong.

How much could prices rise in 2026?

According to Prithviraj Kothari, MD of Riddhisiddhi Bullions, gold could reach $5,000 (approximately ₹1,501.65 lakh) next year. Silver could reach $7,580 (₹2,302.50 lakh). 

Suvankar Sen, CEO of Senco Gold & Diamonds, offers a more cautious forecast. He estimates that by the end of 2026, gold could hover between $4,300 and $4,800 per ounce and silver between $5,575 per ounce.

Siddharth Jain of SPA Capital says that silver moves faster than gold in a bull market. He estimates that gold could reach $4,800/5,000 and silver $85,100 per ounce. 

Naveen Mathur believes that silver has the potential for further gains, especially in the first half of 2026. He estimates that by the end of 2026, gold could reach $4,900/5,200 and silver $8085 per ounce.

In which should you invest, lump sum or SIP?

According to Aksha Kamboj, gold is best for maintaining a stable portfolio and investing in it through a SIP is advisable. Silver is best invested in small portions over time, unless your strategy is a lump sum investment. 

Suvankar Sen says that gold offers stability, while silver has greater upside potential. SIPs help manage volatility, and lump sum investments can also be made at the right time.

Siddharth Jain considers SIPs in silver to be a better option, as they tend to see sudden surges due to industrial demand. SIPs allow investors to take advantage of these fluctuations without the hassle of trying to time the price.

What does the gold-silver ratio indicate?

The gold-silver ratio shows the relative strength of gold and silver. This ratio, which was 87 at the beginning of the year, has now declined to 64.70, as the price of silver has risen more rapidly. Siddharth Jain says that historically, this ratio has even reached 15:1.

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